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NTT Docomo-NEC Venture Secures ¥30 Billion Indonesia Telecom Deal

Tokyo seeks to bolster local firms' global reach with subsidies and equity stakes
Japan
n 9432.TSE n 6701.TSE Blue Chip 150 OM 60 Tech 350
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Japan’s Orex Sai, a joint venture between NTT Docomo and NEC, will export ¥30 billion ($200 million) in telecommunications infrastructure technology to Indonesia as part of a high-speed network project targeted for completion by fiscal 2026, Nikkei reported.

The agreement marks an expansion of the venture’s presence in Southeast Asia, where it has already partnered with Indonesian operator Surge to deploy Open RAN-based 5G fixed wireless access solutions. The deal comes as Tokyo considers direct investment in Orex Sai alongside local Indonesian companies, according to the report.

Japan’s government is weighing subsidies for demonstration projects to reduce risks for domestic firms pursuing overseas contracts. The support measures reflect growing competition for telecommunications infrastructure deals across emerging markets, where Japanese companies have traditionally struggled against Chinese rivals offering state-backed financing.

Indonesia, with one of Asia’s lowest fixed broadband penetration rates, represents a significant opportunity for equipment vendors. However, the economics of deploying networks across the archipelago’s challenging geography remain uncertain.

The fiscal 2026 timeline suggests an aggressive rollout schedule, though such projections have historically proven optimistic in Southeast Asian markets. Whether Tokyo’s financial backing will be sufficient to ensure project completion and profitability remains to be seen.

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